The International Finance Corporation (IFC) committed a total investment of US$14.2 billion in private-sector projects in 45 African countries in the last fiscal year.
The World Bank development-focused organisation reported that the investment reflected a 23% increase over last year’s investment and is its highest to date.
It said two-thirds of the target countries were classified as low-income and/or fragile and conflict-affected situations (FCS), where the need for market support and investment was the highest.
🌍In FY24, @IFC_org supported 130 projects in 45 African countries, marking our largest investment on the continent yet. From sustainability linked loans to partnerships on healthcare, learn about IFC’s impact last fiscal year.
➡️https://t.co/AaMvAgK8Ug #IFCinAfrica pic.twitter.com/BRAoBm0fSV— IFC Africa (@IFCAfrica) October 30, 2024
“Africa is again on a stronger growth trajectory after several challenging years and IFC is increasing its support for the continent’s private sector, delivering solutions to clients ranging from small start-ups seeking seed funding to large companies looking to expand into new markets,” said Sérgio Pimenta, IFC’s vice-president for Africa.
“The reach of our activities across the continent, and our record investment last fiscal year, reflects our commitment to mobilising private sector solutions for sustainable development, especially in Africa’s most challenging markets.”
The US$14.2 billion comprised US$8.5 billion in the IFC’s own funds in long- and short-term financing, while securing the remainder of US$5.7 billion from private-sector investers.
Broken down further, the biggest share of the total investment (US$3.9 billion) was committed to trade financing, with US$1.6 billion assigned to boost smaller businesses, US$1.1 billion to improve digital connectivity, and US$1.9 billion for climate change mitigation and adaptation.
Of the IFC’s commitment from its own account, half was directed to projects with a gender focus, 41% to climate change projects and 21% to low-income countries or FCS.
Some of the projects projects supported by the IFC in 2024 include a commodity trade facility worth US$50 million to Singapore-based Valency for the purchase of agricultural commodities including cashew nuts, sesame seeds, shea nuts, ginger, and soya beans from farmers in Africa
It also partnered with South Africa’s Standard Bank to improve access to finance for renewable energy and low-cost housing.
The IFC sponsored US$260 million of the loan from its own account, with the balance sourced from private investors.
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